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Minister tries to reassure industry over cut to FiTs


l Government responds to concerns as industry predicts major job losses


Greg Barker, the Energy Minister, has sought to reassure the solar industry that the feed-in tariff (FiT) for domestic photovoltaic (PV) installations will not be cut again in April – and could even be raised. The government has come under sustained criticism since it slashed the tariff by more than half to 21p per kWh. It also issued a consultation paper on FiTs. Many in the solar-panel industry were concerned


that a further cut might take effect in April when further changes are brought in. From this date all new domestic PV sites will be required to meet ‘minimum efficiency standards’.


‘There are industry reports that thousands of planned PV installations have been cancelled’


However, Barker told a meeting with the Solar Trade


Association (STA) last month that a further cut in the tariff would not happen, and that the tariff could be actually be higher than 21p, according to a statement from the STA. There are industry reports that thousands of planned


PV installations have been cancelled since the tariff fell in December, and it is claimed that 25,000 jobs could be at risk. One major construction firm, Carillion, last month


warned 4,500 UK staff that their jobs could be affected as a result of the expected fall in the solar PV market. Meanwhile the legality of the FiTs cut is being


challenged in the High Court. Last month the court agreed to hear applications for a judicial review of the


Barker: ‘no further cut to PV feed-in tariff’


tariff change. The applications were brought by the environmental group, Friends of the Earth, and some solar panel firms. The government was also considering a number of revisions to the FiTs scheme to make the money go further, including a ‘capacity trigger’ that reduces the level of payments as the cost of installations falls in line with a growing market. This would mean that future consumers were not receiving a ‘disproportionate’ amount of tariff, a government spokesman said.


For more information visit: www.decc.gov.uk


Doubts raised over new cash for Green Deal


The government has announced an additional £200m of funding for the Green Deal home efficiency scheme when it starts in October. The ‘new and additional’ funds will be part of


an ‘introductory’ offer to boost early take-up of the scheme, which will allow householders to borrow up to £10,000 to improve the efficiency of their homes. ‘This big injection of government funding


delivers on our promise to ensure the Green Deal hits the ground running, and make it as attractive as possible so that people start to benefit from day one,’ said Energy Secretary Chris Huhne. The government is still to announce detailed


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plans on how the scheme will work, but has said it expects it to generate around £14bn of private investment in home energy efficiency over the next 10 years. However, some industry observers are sceptical: ‘I think the funding model is all wrong,’ said George Adams, engineering director at SPIE Matthew Hall. ‘This is not a subsidy; it is an additional cost to the householder because they have to pay the money back. ‘We also have to look very carefully at what


the government thinks will happen in practical terms. What happens if energy bills actually go up because of a change of occupancy or because


people leave their windows open with the heating on? Who picks up the tab? The consumer is most likely to blame the company who carried out the work if they do not get the savings.’ Others pointed out that householders


were suspicious of the claims, and many local authorities are even finding it hard to get residents to accept free loft insulation. ‘Consumers don’t believe the energy saving


figures,’ said Tony Day, energy services director at TEAM Energy. ‘This is hardly a good time to be suggesting to people that they take on another debt. It is a woolly concept that has not been properly thought through.’


January 2012 CIBSE Journal 7


SOLAR ENERGY ‘ONLY AT FRACTION OF POTENTIAL’


Solar energy could become a competitive energy source within 20 years, according to a new report, Solar Energy Perspectives, from the International Energy Agency (IEA). It says some solar technologies are getting close to competitiveness in some circumstances and for some uses. However, it adds that only ‘a limited number of countries have been supporting the effort’. ‘While solar energy resources


are abundant, their use currently represents only a tiny fraction of the world’s current energy mix,’ says IEA report author Cédric Philibert. ‘This is changing rapidly and is being driven by action to improve energy diversification and security, mitigate climate change and provide energy access.’ www.iea.org


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